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Property Ref: 29041

Income Producing Cash & Carry Warehouse Investment - For Sale In Tamworth

Blue Chip Commercial Investment


Booker Cash & Carry, Apollo, Lichfield Road Industrial Estate, Tamworth, Staffordshire, B79 7TA
Available
27,190 SQ FT (2,526 SQ M)
We are instructed to seek offers in the region of £2,450,000 (Two Million Four Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 5.80%, assuming purchaser’s costs of 6.37%.



Enquiry about this Property

Property Type

Investment Industrial/Warehouse

Tenure

Freehold

Gross Annual Income

Current annual rental of £133,572 which the vendor will top up to £151,124 pa until next rent review in February 2020.

Price

We are instructed to seek offers in the region of £2,450,000 (Two Million Four Hundred & Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 5.80%, assuming purchaser’s costs of 6.37%.

Location

The historical market town of Tamworth, with a catchment population in excess of 89,000, is situated approximately 12 miles east of Walsall, 13 miles north-east of Birmingham, and 24 miles west of Leeds. The town benefits from excellent road communications being approximately 5 miles west of Junction 10 of the M42 motorway, via the major A5 trunk road, which in turn provides easy access to the M6, M69, M40 and M1 motorways.

Situation

The property is located on the Linchfield Road Industrial Estate approximately 1 mile to the west of Tamworth town centre, on the north side of Apollo, one of the main roads running through the estate. Nearby occupiers include Kimberly-Clarke, Powelectrics and Scolmore International.

Description

The property, a substantial cash and carry warehouse building, comprises warehouse accommodation on the ground floor and canopied loading area with a roller shutter door to the rear. In addition, the property benefits from car parking for some 38 cars and an approximate site area of 0.66 hectares (1.64 acres).

Accommodation

All measurements are approximate. Interested parties are advised to carry out their own surveys.
Warehouse 27,190 sqft 2,526.03 sqm
TOTAL 27,190 sqft 2,526.03 sqm
Site Area 1.64 acres 0.66 hectares

Tenancy

Let to Giant Booker Ltd, formerly Booker PLC, guaranteed by Giant Bidco Ltd, for a term of 25 years from 28th February 2005 until 2030 on a full repairing and insuring lease. There is a tenant only option to determine the lease on 28th February 2025.

Reviews

Next review on 28th February 2020 and 2025.

The rent is reviewed on a 5 yearly basis to the greater of either the Open Market Rental Value or the current rent reserved per annum with compounded increases of 2.5% per annum. Therefore, minimum rental increases are as follows:

February 2020 - £151,124 pa exclusive
February 2025 - £170,983 pa exclusive

Covenant Profile

For the year ended 24 March 2017, Giant Booker Ltd, reported a turnover of £10.5m with a pre-tax profit of £5.7m. (Source: Experian)

Net Yield

5.80%

VAT

VAT will be payable but subject to meeting the necessary criteria, the sale may be treated as a transfer of a going concern (TOGC).

EPC

Energy Performance Certificate (EPC) available upon request

Legal Costs

Each party to bear their own legal costs

Misrepresentation

Telsar Ltd and its joint agents, give notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Telsar Ltd or its joint agents, has any authority to make any representation or warranty whatsoever in relation to this property. All rentals and prices are quoted exclusive of VAT.